Frequently Asked Questions
1) How can you offer a free service?
2) I keep getting rejected for credit; how can you get me a loan?
3) I have been advised to go to a debt management company. What do you recommend?
4) I have heard of an Individual Voluntary Arrangement (IVA), what is it?
5) Is bankruptcy an option?
6) Will my credit rating be affected?
1) How can you offer a free service?
Financial Guardian believes that it is every clients right to the best possible financial advice without upfront fees or other charges. We do not spend a fortune on advertising so our costs are low. If we are able to help you directly, for instance in putting together an Individual Voluntary Arrangement, then we will apply to your creditors for our fees - you pay no more or less. Whatever your financial circumstances, we are duty bound to provide you with the best possible advice.
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2) I keep getting rejected for credit; how can you get me a loan?
We have access to a wide panel of lenders including many household names. Often, once we become familiar with your overall financial position, we are able to present a package of client measures to the lender which involves a mix of borrowing and other financial restructure to get the client out of their debt problems fully.
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3) I have been advised to go to a debt management company. What do you recommend?
Financial Guardian is not a Debt Management Company. If we believe that this solution is the most appropriate for your given financial circumstances then we may recommend a number of companies that you could talk to. As always with any of our advice YOU DECIDE.
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4) I have heard of an Individual Voluntary Arrangement (IVA), what is it?
An IVA is a specialist solution for consumers with severe debt problems (generally in excess of £15,000) who are struggling to meet their credit commitments. A single new agreement is put in place to cover all your unsecured creditors which replaces all the other agreements. Under a standard IVA you make a single affordable payment each month - generally for up to 60 months - and at the end of the period any remaining debt is completely written off by your creditors. There are many IVA variations depending on whether you own a house or are a tenant, whether you have other assets etc. however once approved all interest and charges are frozen and debt collectors stop calling.
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5) Is bankruptcy an option?
Under the Insolvency Act 1986 anyone who owes more than £750 can petition for their own bankruptcy! However this is a highly specialised area and is only advised as a very last resort in circumstances where no other option or combination of solutions works or has been rejected by the creditors. Financial Guardian prides itself on our ability to help many people, who would otherwise have had to declare themselves bankrupt, find a solution which gets them back on the road to financial freedom
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6) Will my credit rating be affected?
We will always recommend to clients that their credit rating should be protected and enhanced if possible, and advise on the best options to do this if further borrowings are possible. However if you need to take drastic action to remove a debt problem then it is likely that your credit rating is already impaired. Often by entering into a form of debt restructure the clients credit position gets no worse but will improve again in time once the restructure is completed.
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